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Microsoft Dynamics AX (Archived)
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BOM line type pegged supply and vendor

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I have an BOM B0001 which contains a sub-BOM B0002, the B0002 is kind of subcontracted work that should be released to the vendor . for the component Item(M0002) that related to the sub-BOM B0002 is configured "Production" as the default order settings.

Item Number: M0001, BOM Number: B0001

Item number: M0002 , BOM Number: B0002

Case 1:

M0002 default order settings is "Production", BOM line type "Vendor"

a default production order create automatically for M0002 when i estimate the production order, and the production order type is Vendor.

Case 2:

M0002 default order setting is "Production", BOM line type "Pegged Supply"

a default production order create automatically when i estimate the production order, and the production order type is Standard.

But when i went through these two production order, i cannot find any difference from the process point of view, so what's the point these two line types?

Notes:

i found some specifications from the Microsoft Training Material, but still confusing since the process are almost the same.

Subcontractor Work Type Production
If a production order, or part of a production order, is satisfied by a
subcontractor, and raw materials should be released to the vendor, the produced
item must have a BOM, with the line type Pegged supply.

Subcontractor Work Type Production
If a sub-BOM is outsourced to a subcontractor, this sub-BOM must use the
Vendor line type, and all operations in the route must use a resource of the type
Vendor so that the subcontractors capacity can be included in the schedule.
If the schedule does not have to use the subcontractor's capacity, and if a specific
delivery time is agreed upon instead, the route does not have to be attached to the
BOM item; it can alternatively specify the delivery time in days directly on the
Item. When you are estimating the higher level production from then on, a
pegged production order of the type Vendor is created automatically.


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  • Suggested answer
    guk1964 Profile Picture
    10,888 on at
    RE: BOM line type pegged supply and vendor

    From a  sub contract order a Purchase order is required to order, receive goods, and to be invoiced and paid to the supplier.

    The vendor operation is effectively part of your route , i.e the subcontract work is part of your wip.  

    If you just want to buy a part that is made externally,   then its just another item on the BOM and will be bought to inventory as an other item and will be picked from inventory so the sub bom is then irrelevant to you.  You could hold an in an inactive  BOM for it for its structure information e.g. when you provide the components to be made but the nd item is received to stock not direct to order.

  • Suggested answer
    Weaveriski Profile Picture
    23,616 Moderator on at
    RE: BOM line type pegged supply and vendor

    The pegged supply would be internally reading what you have written because it is not configured to be outsourced. If you read your help it does explain ultimately a subcontracted production order is pegged supply of type vendor. When setting up "pegged supply" as you have you are simply saying when I make the item associated with B0002 always create a related production order - whether this is internal or external depends upon the configuration.

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